Alternative Options

Private lenders offer flexible financing for homeowners who may not qualify for traditional bank loans. These lenders—ranging from private individuals to investment firms—focus more on a property's potential value than the borrower’s credit score. While they provide faster approvals and fewer restrictions, they often come with higher interest rates and fees.

Key Considerations

• Higher costs compared to conventional loans
• Shorter loan terms with balloon payments or refinancing requirements
• Less stringent credit requirements

Providers to Explore

• List of Private and Mortgage Lenders

HESA allows homeowners to receive an upfront cash payment in exchange for a share of their home’s future value. This can be an attractive option for those with significant home equity but who want to avoid monthly loan payments.

Key Considerations

• Typically requires a minimum of 25% equity in the home
• HESAs are not standardized across providers — it’s important to compare terms, such as duration and flexibility, when evaluating different offers
• Must be a primary residence
• Restrictions on existing debt or liens may apply

Providers to Explore

• ‍Clay Financial
• ‍The Home Equity Partners

Pooling resources with family, friends, or investment partners can make financing more accessible. Co-ownership allows multiple parties to share costs, risks, and property appreciation, but it requires clear agreements to avoid potential conflicts.

Key Considerations

• Legal agreements should outline ownership percentages and responsibilities
• Potential tax and mortgage qualification implications
• Exit strategies should be planned in advance

Providers to Explore

• Husmates‍
• CoHome Canada

Some developers and builders offer in-house financing or partnerships with financial institutions to make projects more accessible. These arrangements may streamline the financing process but could come with restrictions on loan amounts, interest rates. A joint venture (JV) is another alternative option where a partnership between two or more parties who pool resources. Typically, one partner provides capital (the investor), while the other offers expertise, project management, or property ownership. Joint ventures are ideal for those lacking upfront capital but having land or project expertise.

Key Considerations

• Financing is typically tied to the builder’s approved lenders
• Limited flexibility in loan terms compared to traditional or private loans
• Interest rates and fees may vary based on project agreements
• For joint ventures, proper legal and financial planning is essential to ensure a successful collaboration.

Providers to Explore

• 555 Construction
• Laneway Homes